How to ensure scalability in the economic cycle

The scalable High Performance Organisation is proving to be an intelligent and durable solution for successfully coping with economic fluctuations. Thanks to five typical characteristics, it can better cushion fluctuations in demand and ensure sustainable value creation.

Five characteristics of the scalable high performance organisation:

1. is clearly strategically positioned in the market

• Aims for a scalable role along the value chain
• Focuses on high-margin stages of the value chain
• Invests in strategic growth areas

2. avoids unnecessary complexity in the product/service portfolio

• Develops its own portfolio systematically and detached from day-to-day operations
• Makes make-or-buy decisions from a strategic and cross-functional perspective
• increases the reusability of customer solutions through modularisation and standardisation

3. provides the basis for a sustainable increase in earnings by several EBIT points

• Outsources non-differentiating stages of the value chain to reduce fixed costs and risks
• Increases efficiency by eliminating waste in all areas of the company
• Ensures that budgeted costs are met in cost management

4. has end-to-end business processes

• Consistently aligns business processes with the customer journey
• Has a common process understanding of how services are delivered to the customer
• Has clear responsibilities for revenue and costs that are process-separated and systematically anchored

5. has a process-oriented, transparent management structure

• makes quick decisions thanks to clear areas of responsibility
• enables managers to act by ensuring that the operational and organisational structures are in harmony with each other
• empowers employees through clear tasks, competencies and responsibilities

hpo accompanies you systematically and from A to Z on the way to a scalable high performance organisation. Together we identify the right levers and the most promising potentials and develop the individual target picture. This is implemented step by step and with the involvement of all affected stakeholders in the company to ensure a successful transformation and the long-term effectiveness of the new organisation.